Wednesday, May 21, 2008

Quebec Court of Appeal Stops BCE's Privatization

The Quebec Court of Appeal has blocked BCE's proposed privatization plan. Earlier in the week, it was reported that several of the key involved in the transaction were seeking to change interest rates and other key terms of deal due to the ongoing credit crunch.

BCE said it is now seeking direction from the Supreme Court of Canada.

  • In June 2007, BCE, the parent company of Bell Canada, agreed to be acquired by an investor group led by Teachers Private Capital, the private investment arm of the Ontario Teachers Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners, LLC. The all-cash transaction was valued at C$51.7 billion (US$48.5 billion) at the time, including C$16.9 billion (US$15.9 billion) of debt, preferred equity and minority interests. The BCE Board of Directors unanimously recommended that shareholders vote to accept the offer. The equity ownership of BCE would be as follows: Teachers Private Capital 52%, Providence 32%, Madison Dearborn 9% and other Canadian investors 7%.

See also